Bitcoin News Today: Bitcoin Slides Below $115K as Galaxy Digital Unloads 12800 BTC and Dormant Wallets Awaken

Bitcoin faces renewed downward pressure as Galaxy Digital offloads a substantial portion of its Bitcoin holdings, while the reactivation of long-dormant wallets adds further uncertainty to market dynamics. The sell-off, which saw 12,800 BTC (approximately $1.5 billion) transferred to exchanges within 24 hours, has driven Bitcoin’s price below the $115,000 level. Blockchain analytics firm Lookonchain identified the activity as originating from a high-profile whale holding 80,009 BTC, worth nearly $9.6 billion before the liquidation began. This whale initiated transfers to Galaxy Digital on July 15, completing the full movement by July 18, with over 40,000 BTC moved in a single day [1]. The sudden outflow has heightened volatility and raised questions about the stability of Bitcoin’s current price trajectory.

Compounding concerns, multiple dormant Bitcoin wallets have reactivated, signaling potential shifts in capital allocation. SpotOnChain reported that three wallets—likely controlled by a single entity—moved 10,606 BTC ($1.26 billion) this week, with these holdings originally acquired in December 2020 when Bitcoin traded at $18,803. Additionally, Lookonchain noted a 14.5-year-old whale wallet transferring 3,962 BTC ($468 million) to a new address, marking one of the oldest reactivations on record. Another wallet moved 6,000 BTC after six years of inactivity. Analysts suggest these movements reflect long-term holders repositioning assets, potentially preparing for increased market volatility [2]. The activation of such aged holdings often precedes heightened selling pressure, as old supply transitions to short-term holders or exchanges, further complicating Bitcoin’s price outlook.

Simultaneously, Bitcoin’s dominance in the cryptocurrency market has declined, indicating a possible shift toward altcoins. The Bitcoin dominance index fell from 64% to 60% between July 17 and July 21, with a slight recovery to 61.55% in recent days. This decline aligns with broader capital rotation into alternative cryptocurrencies, as investors diversify holdings amid Bitcoin’s struggles. The Altcoin Season Index, currently at 43, suggests the market is trending toward a potential altseason but has not yet reached full momentum [3]. Traders are closely monitoring whether this trend will accelerate, as increased altcoin activity often correlates with higher trading volumes and volatility in the broader crypto market.

Market sentiment remains divided. While Galaxy Digital’s sell-off appears to be tapering, some traders anticipate a rebound, with voices like SalsaTekila advocating for buying the dip. However, the combined impact of the liquidation and dormant wallet activity has left the market cautious. The uncertainty is compounded by the lack of clarity on whether the selling pressure has peaked or if further downside risks persist. Analysts emphasize the importance of tracking whale activity and market sentiment to gauge the next phase of crypto cycles.

The developments underscore a shifting landscape where institutional and long-term holder behavior increasingly influences price dynamics. As Bitcoin navigates these pressures, investors are advised to remain vigilant and consider diversification strategies to mitigate risks. The interplay of large-scale sell-offs, reactivated dormant wallets, and altcoin rotation highlights the evolving nature of cryptocurrency markets, where traditional indicators are increasingly intertwined with blockchain analytics insights.

Sources:

[1] [Bitcoin Faces Pressure Amid Galaxy Digital Sell-Off and Dormant Wallet Activity](https://en.coinotag.com/bitcoin-faces-pressure-amid-galaxy-digital-sell-off-and-dormant-wallet-activity-hinting-at-possible-market-shift/)

[2] [Bitcoin Faces Pressure Amid Galaxy Digital Sell-Off and Dormant Wallet Activity](https://en.coinotag.com/bitcoin-faces-pressure-amid-galaxy-digital-sell-off-and-dormant-wallet-activity-hinting-at-possible-market-shift/)

[3] [Bitcoin Faces Pressure Amid Galaxy Digital Sell-Off and Dormant Wallet Activity](https://en.coinotag.com/bitcoin-faces-pressure-amid-galaxy-digital-sell-off-and-dormant-wallet-activity-hinting-at-possible-market-shift/)